Question
A $1,000 par value bond is issued with a 15 year maturity and a coupon rate of 8 percent. Three years later the price has
A $1,000 par value bond is issued with a 15 year maturity and a coupon rate of 8 percent. Three years later the price has fallen from $1,000 to $862. Assuming semi-annual coupon payments, what is the new annual yield to maturity on the bond?
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Real Estate Finance
Authors: John P. Wiedemer, Keith J. Baker
9th edition
324181426, 324181425, 978-0324181425
